Pellegrini quits Paulson & Co to start fund

Interactive Investor – Paolo Pellegrini, who played a crucial role in helping to implement bets against subprime mortgages that netted Paulson & Co about $15 billion in 2007, resigned from the hedge-fund firm on Dec. 31, the Wall Street Journal said.

Pellegrini, who along with John Paulson was the co-portfolio manager of the two Paulson Credit Opportunities funds, is expected to start his own hedge fund, the paper said.

The departure was amicable, the paper said, citing people close to the matter.